Service and System thinking
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1 Service and System thinking Department of Computer Systems and Communications Academic Year: Service Design and Service Delivery Process Francesco Caputo
2 Service Design Definitions Service Something that is done to, or for, a customer Service delivery system The facilities, processes, and skills needed to provide a service Product bundle The combination of goods and services provided to a customer
3 Service Design The Service Design is based on a strategic choise which determines the nature and focus of the service and its market target Degree of variation in service requirements Key issues in service design Degree of customer contact and involvement
4 Characteristics of Services Services are acts, they are intangible but highly visible to the customers Services contain both of tangible and intangible attributes Service performance can be affected by workers personal factors Services are created and delivered at the same time, they are not consumed but experienced, and they cannot be inventoried. Services have low barriers to entry Service requirements are variable Services tend to be decentralized and dispersed Services are consumed more often than products Services can be easily emulated
5 Service Business A service business is the management of all the organizations that interact with customer to produce the service Facilities-based services: Where the customer must go to the service facility Field-based services: Where the production and consumption of the service takes place in the customer s environment
6 Service Delivery System Components of service delivery system: Facilities Processes Skills Service design involves: The physical resources needed The goods that are purchased or consumed by the customer Explicit services Implicit services
7 Phases of Service Design Conceptualize Identify service package components Determine performance specifications Translate performance specifications into design specifications Translate design specifications into delivery specifications
8 Phases of Service Design Service Concept Desired service experience Service Package Targeted customer Physical items Sensual benefits Psychological benefits Performance Specifications Customer requirements Customer expectations Customer Design Specifications Service Provider Activities Facility Provider skills Cost and time estimates Delivery Specifications Schedule Deliverables Location Service
9 Design for High-and-Low Contact Services (1 of 2) DESIGN DECISION HIGH-CONTACT SERVICE LOW-CONTACT SERVICE Facility location Convenient to customer Near labor or transportation Facility layout Must look presentable, accommodate customer needs, and facilitate interaction with customer Designed for efficiency Quality control More variable since customer is involved in process; customer expectations and perceptions of quality may differ; customer present when defects occur Measured against established standards; testing and rework possible to correct defects Capacity Excess capacity required to handle peaks in demand Planned for average demand
10 Design for High-and-Low Contact Services (2 of 2) DESIGN DECISION HIGH-CONTACT SERVICE LOW-CONTACT SERVICE Worker skills Must be able to interact well with customers and use judgment in decision making Technical skills Scheduling Must accommodate customer schedule Customer concerned only with completion date Service process Mostly front-room activities; service may change during delivery in response to customer Mostly back-room activities; planned and executed with minimal interference Service package Varies with customer; includes environment as well as actual service Fixed, less extensive
11 Applying Behavioural Science to Service Encounters The front-end and back-end of the encounter are not created equal Segment the pleasure, combine the pain Let that the customer can control the process Pay attention to norms and rituals People are easier to understand than systems Pay attention to the service recovery
12 Characteristics of a Well-Designed Service System Each element of the service system is consistent with the strategic and operating focus of the firm It is user-friendly It is robust and easy to sustain It is structured It provides effective links between the back office and the front office It is cost-effective It ensures reliability and high quality
13 Challenges of Service Design Variable requirements Difficult to describe High customer contact Service customer encounter
14 Guidelines for Successful Service Design Define the service package Focus on customer s perspective Consider image of the service package Recognize that designer s perspective is different from the customer s perspective Make sure that managers are involved Define quality for tangible and intangibles Make sure that recruitment, training and rewards are consistent with service expectations Establish procedures to handle exceptions Establish systems to monitor service
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